Hot Off the Press…

E&Y and VentureOne have reported that U.S. venture capital investing reached its highest point in 4 1/2 years with $6.73 billion directed to 619 deals. Increased later stage funding was an important factor contributing to the overall rise in investment.

Capital investment in health care companies increased 25% over the same quarter a year ago, reaching $2.24 billion in 160 rounds. The biopharma segment was the major driver of this with 80 deals and $1.45 billion invested, including eight of the top 12 deals in 2Q06. A number of those large deals included partnering investments from major pharmaceutical companies, a common trend that has emerged and, I believe, continue to accelerate. The medical devices segment also had a strong quarter with 58 deals and $617.6 million, increases of 32% and 30% respectively, over the same quarter last year.

The total investment in biopharma was the most capital investment in the segment since VentureOne began tracking the data in 1992.

Click (here) to read the entire release.